The full story...

Farmers in three Australian states experience lowest rainfall on record

CHRIS UHLMANN: It's being described as a once in a 100 year drought. Parts of New South Wales and large swaths of western Queensland and Victoria have chalked up the lowest rainfall on record over the past two years.

The Abbot Government is preparing to re-allocate $100 million in low interest loans to farmers in the worst affected areas.

Brent Finlay is the president of the National Farmers' Federation and he joins me now from Darwin.

Good morning.

BRENT FINLAY: Good morning, Chris.

CHRIS UHLMANN: Brent Finlay, can you give us a sense of where the drought is biting and how farmers are faring?

BRENT FINLAY: Certainly. The western districts of Victoria are, they're rapidly sliding into drought. But northern New South Wales and over 75 per cent of Queensland is in drought and has been in drought for three years, approaching the fourth year.

CHRIS UHLMANN: Are people leaving farms?

BRENT FINLAY: Oh, certainly. And we're starting to see communities starting to collapse.

Now I've done a number of tours through western Queensland, northern New South Wales, and no, it's tough out there. It's certainly tough on the people that are there.

CHRIS UHLMANN: And how are the private banks treating people at the moment? We've heard complaints in the past.

BRENT FINLAY: Well, we had a debt summit in Canberra a month ago and there was discussions around that and certainly around banks approaching drought-stricken farmers, and also talking about a national debt mediation process so we actually have some checks and balances around when unfortunately our businesses get into trouble.

CHRIS UHLMANN: Now the Federal Government says that no decision has been made yet on extending low interest loans. Are you expecting it?

BRENT FINLAY: Well, no, I'm only seeing what's in the media and there's been no official announcement about it. We welcome the reallocation of funds, if that's what happens. These are loans and they're loans that have to be paid back.

CHRIS UHLMANN: What kind of interest rates and terms are you talking about with these loans?

BRENT FINLAY: Well what we're seeing in the media is interest rates of around 3 per cent and, no, certainly, that is cheap, affordable money for a lot of people that probably haven't taken part in any of the schemes up to date.

CHRIS UHLMANN: And what would the loans be used for?

BRENT FINLAY: Well it's certainly- it's restocking when it does rain. And right at the moment it's hard to do anything. What we obviously need is rain and a lot of rain. But it's restocking and it's replanting crops and getting these businesses back on their feet.

CHRIS UHLMANN: Isn't this just propping up, though, businesses that are marginal? If the Government doesn't do it for workers in the manufacturing industries, why should it support farmers?

BRENT FINLAY: I think in your intro you were talking about a one in 50, or one in 100 year drought. And before this drought, these businesses were strong, they were viable. And when it rains they will be again.

CHRIS UHLMANN: Will they be again or are you expecting that over time, with climate change, you might see less rain in these areas, they become ever more marginal?

BRENT FINLAY: Well climate change and discussions around that are obviously at the forefront of everybody's mind. Farmers, we adjust to the climate we see every day. And we read all the predictions and adjust our production systems accordingly.

CHRIS UHLMANN: Have you had any talks at all with the Agriculture Minister? Have you had anything more than a nod and a wink or just what you're seeing in the media?

BRENT FINLAY: Just what we're seeing in the media. I'm in Darwin today and the Minister is joining me here later this morning.

CHRIS UHLMANN: And you'll be putting pressure on him?

BRENT FINLAY: I will certainly be having the discussion and probably having a discussion in front of the conference that we're at.

CHRIS UHLMANN: Now as you say, you are in Darwin and you're there for the inaugural Northern Australia Food Futures conference. Now the idea of a northern food bowl has been around for at least half a century. Is it viable or a pipe dream?

BRENT FINLAY: Certainly, the level of confidence that's been here the last two days, and the Minister will see that when he arrives today. And we have a wonderful opportunity in Australian agriculture, northern Australian agriculture, with the trade agreements that are being worked on now. And also the customers to our north, to Asia, that are wanting our safe and green product.

CHRIS UHLMANN: And weren't we talking about this with the Ord River Scheme as I recall, when I was a young lad?

BRENT FINLAY: Well, I think things have changed. I think what we all have to do is link to the customer. And there's certainly a couple of billion customers north of Australia. We produce what they want and it's a matter of actually producing that, finding those markets and making those linkages.

CHRIS UHLMANN: Isn't that the problem, linking to the customer, because the distances are great?

BRENT FINLAY: Well, we're a lot closer in northern Australia than we are in southern Australia and I think that's a great opportunity for northern Australia. But also we can learn from the lessons of southern Australia.

CHRIS UHLMANN: What are the challenges, though, that you face in trying to set up a food bowl in the northern part of Australia?

BRENT FINLAY: Well part of it is actually having a plan. We've got to go about this in a very organised, structured manner. And that's why we've got the three state agriculture ministers or the Territory Agriculture Minister here in discussions.

Again, linking to the markets, finding those markets, securing the resources that we need as farmers. Farming is a long-term business. And also, particularly around infrastructure, having the infrastructure to be able to get our product from the farm gate to our customer.

CHRIS UHLMANN: Brent Finlay, thank you.

BRENT FINLAY: Thank you.

CHRIS UHLMANN: And Brent Finlay is the president of the National Farmers' Federation.

Images

Click an image to enlarge

From the Archives

Around 500 Indigenous people fought in the First World War, and as many as 5,000 in the second. But many Aboriginal and Torres Strait Islander diggers who made it home received little or no recognition for their contribution. On Anzac Day, 2007, the first parade to commemorate their efforts and bravery was held in Sydney. Listen to our report from that day by Lindy Kerin.